How much debt are you actually in?

[GiftedNotFree]

I manage to pay the minimum amounts of my debt each month - a loan and a couple of credit cards but don’t make any dents in them . If I spoke with Step change could they still help me as I’m not behind on payments and would this damage mycredit score? I do have a mortgage and my current rate runs out in March, if they offer me a further low rate will they do credit checks etc then? My income has also reduced after being put at risk of redundancy and accepting a lower paid role

Yes, they can help. If you go down the route of some form of debt solution, then yes it will affect your credit for 6 years. For example, If you put a DMP in place, the accounts would go into default and this would only be removed from your credit record after 6 years from the date of default.

As for the remortgage — some lenders do a new credit check but others don’t as it’s not a new application. Stepchange (and other debt charities) would be able to advise.

 

[hlgray]

I posted way back in Jan saying that I wanted to get myself sorted.
Well, on Friday I paid off my credit card. By Christmas my next account will be paid off and i shouldn't be living in my overdraft. By 2022 i will have a healthy amount of savings

 

[Lovegin]

I posted way back in Jan saying that I wanted to get myself sorted.
Well, on Friday I paid off my credit card. By Christmas my next account will be paid off and i shouldn't be living in my overdraft. By 2022 i will have a healthy amount of savings

Well done

 

[hiya_hun]

Sorry if this is off topic but please could you clarify what happens with your credit if you use stepchange? Does it make your credit rating non existent so then you’re even more at a loss? I’d love to be able to sort out my debts as it really fuels my anxiety but don’t want to end up in an even bigger mess with no credit etc.

I get where you are coming from but unless you plan on taking out more credit... Having a low credit rating means nothing in the grand scheme of things.

Try and save even a little emergency fund so if anything unexpected comes up you have the funds there and just focus on getting rid of the debt!

Stepchange is a life line for a lot of people

 

[Aliceinherpalace]

Thanks for your help

 

[DoctorWho]

Was 20k. Had to declare myself bankrupt

 

[Drea1984]

Over £2500 to British Gas - I paid monthly then was hit with this shock bill after 12 months
£600 overdraft
£200 Klarna / Clearpay

Re your British Gas problem. This happened to me. 2k. A nightmare

Good grief, what sort of uni course means racking up £50K of student debt? Genuinely interested, not being critical. I know some courses take years - veterinary surgeon 7 years, for example.

My child (grown up now) has 81k of student debt. Works as a solicitor but I’m still staggered at how it’s so much?

 

[Casperron]

Re your British Gas problem. This happened to me. 2k. A nightmare


My child (grown up now) has 81k of student debt. Works as a solicitor but I’m still staggered at how it’s so much?

What happened with your British Gas problem. Did you pay it?

 

[Sosig]

27, renting saving to buy.

Current debt is £800 on a credit card.

This time 3 years ago I was around 5 grand in debt because of overdraft, loans, credit cards & having a very account spiraled into a depressive state because of it.

For past two years I've worked every hour God sent and cleared the lot by March, took pleasure in closing the very account

I've now got a regular standing order to my Help to buy ISA and a healthy savings account.

 

[Broken puzzle]

$0 credit card
Owe $40,000, on a house worth $325,000.
Car loan balance $2,000
Medical debt $10,000.
Job security weak. Husband was laid off one week this year already, at a place he has worked 30 years at.

 

[Itsafingbingthing]

Debt free as of three months ago! Get so angry with myself about how stupid I was for so long. Maxed out a loan, over draft and very account after uni. Parents couldnt help and paying rent/bills/travel on £12500 a year entry level PR job meant I funded all the nights out and clothes with debt that meant even as my wage increased, so did my lifestyle costs and spent a decade paying minimum payments. Even if I got a bonus or something I'd pay something off and then treat myself.

Was nearly £10k 2years ago when I finally realised I shouldnt be in debt with mine and my partners wage and just needed to stop spending!

Now I'm debt free I HATE actually spending my money and consider any purchase for weeks, where as when I was buying in credit I just didnt care?! Just wish id realised 10/15years ago I didnt need 'things'!

 

[GiftedNotFree]

Debt free as of three months ago! Get so angry with myself about how stupid I was for so long. Maxed out a loan, over draft and very account after uni. Parents couldnt help and paying rent/bills/travel on £12500 a year entry level PR job meant I funded all the nights out and clothes with debt that meant even as my wage increased, so did my lifestyle costs and spent a decade paying minimum payments. Even if I got a bonus or something I'd pay something off and then treat myself.

Was nearly £10k 2years ago when I finally realised I shouldnt be in debt with mine and my partners wage and just needed to stop spending!

Now I'm debt free I HATE actually spending my money and consider any purchase for weeks, where as when I was buying in credit I just didnt care?! Just wish id realised 10/15years ago I didnt need 'things'!

I could have written this pretty much word for word! Oh the money I have wasted !!! But the good thing is you learn from such mistakes and like you say it teaches you how to manage your money.

 

[slippyfrog]

£36,000 from trying to survive on disability benefits after 2 emergency spinal surgeries like wading through mud.

I’m around £23k in debt caring for my daughter with long term health needs and I also had spinal ops which caused me to lose my job. I’m back in work now and have all adaptations to help me work.
It’s been tough so I understand where you are coming from. I spoke to a free debt charity called stepchange. They were fantastic and free xx

 

[idk2]

£1200 on 1 credit card - I do have the money to pay this but its 0% interest until 2021. This was only put on there recently when my car insurance renewed in May and I didn't want to pay it on debit card as if I lose my job, I would rather have actual money to fall back on than rely on credit, if that makes sense.

My problem is when I'm close to clearing my credit card and want to treat myself, I justify buying things and putting it on the CC as its 0% interest and it'll help my credit rating when I pay it off. It makes me feel like I'm not actually spending money. I'm glad I have the self awareness to check myself and stop myself from doing this too much though but its incredibly hard as I dont like spending my money but on a credit card, it doesnt feel like I am because its not leaving my current accounts

 

[SkinnyTurkeyDinosaur]

Minus 200 pound overdraft

 

[Drea1984]

What happened with your British Gas problem. Did you pay it?

I’m paying it off monthly and my partner & I paid off £250 each when we first got told.
I should finish in a few months but they still want to charge me £90 a month for my electric? Did you sort yours out?

 

[Greys1324]

Aside from my mortgage (£290k) and my student loan (£11k) I’m debt free. I worked really hard to clear all my credit cards 2 years ago when I knew I wanted to start looking to buy a house.

 

[Kim Mild]

I have a credit card, which I don't use , but I would if I needed to and I don't go in my overdraft (which is £1200).

We have a mortgage, but I don't class that as 'debt' as it is a monthly direct debit ,for something we use ,that we can afford .

Cars are owned outright.

However, we are £400 in debit with our energy company due to estimated Bill's being lower than our actual usage. (That really snuck up on us, I had no idea)

 

[Casperron]

I

I’m paying it off monthly and my partner & I paid off £250 each when we first got told.
I should finish in a few months but they still want to charge me £90 a month for my electric? Did you sort yours out?

I disputed it and they took off about £1000
Tried to switch but there was an issue
Managed to switch the electric though and now only pay £27 a month with bulb ( was £250 a month with British Gas) haven’t paid British Gas

 

[treatyo'self]

Just bought a house this year so have a hefty mortgage on that.
About €12k left in a car loan that we pay jointly every month.
Looks like we're going to have to buy a new car also as we're finding it difficult to live with one between us due to change in commute so likely to have another car loan to pay back on top of that in the next few months